Best Crypto to Invest in / Best Crypto to Buy / Best Crypto to Invest in 2021
Table of Contents
These seven cryptos represent the best available on the market.
Many people did not know that the Bitcoin protocol was designed to solve the 2009 economic crisis. It was not just a new asset class, but a new currency. How do investors decide which cryptocurrencies to invest in in a market worth more than $1.3 trillion? Let’s look at seven top cryptocurrencies that you should invest in by 2021. Then, we will give you the bull case for each. Investors shouldn’t place bets with money they could lose, just as with the stock market. Even high-quality cryptos are not always stable.
Best Crypto to Invest in / Best Crypto to Buy / Best Crypto to Invest in 2021
Bitcoin (BTC).
Bitcoin’s growing acceptance is its saving grace. Both institutional and retail investors will be eager for cryptocurrencies with Bitcoin. The “digital gold” trend is being embraced by some of today’s most creative business leaders.
Square Inc. (SQ), CEO Jack Dorsey stated he believes there is nothing more important in life than Twitter Inc. It is a way to help poor countries avoid currency depreciation and facilitate quicker and cheaper cross-border transfers. Even though Bitcoin’s price fell more than half in two months after hitting its all-time high of $65,000, Tesla Inc. (TSLA’s) decision to include Bitcoin on its balance sheet earlier in the year could help to bring in more corporate treasury flows over time.
Ethereum (ETH).
Ethereum is Scottie Pippen’s cryptocurrency. It has been second fiddle to Bitcoin for years. Ethereum’s market capitalization is around $276 billion. This represents a small portion of the crypto market. It is still four times larger than Bitcoin’s 47%. Ethereum, the most popular platform for decentralized financial services allows users to create smart contracts that execute automatically when certain conditions have been met.
Ethereum is a money-saving platform. It allows users to eliminate banks, clearinghouses and brokerages. DeFi’s rising popularity should result in increased usage of the platform. This platform can be used to create new cryptocurrencies and/or exchange nonfungible tokens (known as NFTs) among other uses.
Binance Coin (BNB).
One of Binance Coin’s main benefits is its simplicity. It has a limited number of tokens just like Bitcoin. BNB is fourth most valuable cryptocurrency in the world, with a limit to 200 million tokens. Binance coin, the native currency, has seen its price rise by over 700% since 2021. It works on a different model than any other cryptocurrency. It “burns” or destroys large amounts of its currency every quarter and only one-fifth of its profits are used to do so. Binance Coin’s market capitalization exceeds $50 billion. Binance will remain bullish as long as it continues to grow.
Bitcoin Cash (BCH)
Itcoin, the first cryptocurrency to be created, was a beacon for the future of digital currencies. The Bitcoin blockchain’s blocks are only 1 megabyte in size. This frustrates many developers and users. This limitation started slowing down transactions and increasing fees. Bitcoin Cash attempted to resolve the problem by forking from its parent company in 2017. It adopted a block size of 8 MBs in 2017.
Although BCH isn’t as stable and widely used as its nameake, it is still more valuable than any other cryptocurrency. It is also the 12th most valuable in the world. BCH’s current price is $500, which is a steep drop from the April 2021 highs of $1,600. However, it remains well above the $342 level that it began the year at.
Best Crypto to Invest in / Best Crypto to Buy / Best Crypto to Invest in 2021
Cardano (ADA)
Cardano, like Ethereum, is a decentralized Blockchain platform that uses Ada as a native cryptocurrency to facilitate peer-to-peer secure transactions. Cardano was founded by Charles Hoskinson, the founder of Ethereum. To create Cardano, he left the largest platform for decentralized financing. Cardano consumes a fraction of the energy needed by Ethereum or Bitcoin. Cardano does this by using a “proof-of-stake” protocol. This protocol does not encourage excessive energy consumption and is increasingly being used by blockchains to verify transactions for safety purposes.
Cardano is the fifth most valued cryptocurrency, with a value of $43 billion. It is currently working towards enabling smart contract technology, which should be fully operational by fall 2021.
Dogecoin (DOGE).
Dogecoin was named after the Internet meme “Doge”, which is a Shiba Inu dog. It was designed to be a funny take on blockchain. It is the eighth largest cryptocurrency by market capital. Over the past year, the cryptocurrency has seen a rise of around 4,000%. Its price peaked at more than 70c in May. However, it has since dropped. Dogecoin’s price is still well below $1 due to its higher circulation and unlimited ability to mine more. Bitcoin’s 21 million coins limit has been met.
However, there are already 130 Billion Dogecoins and new blocks can still be mined every year. Although it is highly speculation, Dogecoin has an even faster mining rate (or hash rate) than Bitcoin. This gives it a quantifiable advantage over other cryptocurrency.
Polkadot (DOT)
Contrary to stocks that are subjective, cryptocurrencies can also be debatably called “fundamentals”. When dealing with crypto, there are other credentials that you should be aware of. The person who initiated the project is one of them. Gavin Wood, a cofounder and investor in Ethereum, made DOT one the most valuable cryptocurrencies. DOT has the advantage of being able to be used as a bridge between network, so applications can be built using Polkadot which work on both the Ethereum or Bitcoin networks. It was built by industry pioneers and is one of the earliest cryptocurrencies. It is therefore more scalable and faster than other cryptocurrencies.
Best Crypto to Invest in / Best Crypto to Buy / Best Crypto to Invest in 2021
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Bitcoin Cash (BCH)
- Cardano (ADA)
More to Read: What is NFT? NFT meaning? Where to buy NFT in 2021? (non fungible token)
